If you are in Foreclosure We Can Help You

There are things we can do for you and the sooner you begin the more options you will have! In most cases at this point if you have already been served the Notice of Sale time is of the essence. Your Property will normally be sold at auction to the highest bidder coming in at least equal to the the amount owed to the Lender. That means all or most of your equity went to the wind. Let’s get together and go over some options.

Just so You Understand

Contrary to popular belief the typical lender does not want your house. They want the stream of payments that you agreed to when you borrowed money from them. So in reality mortgage lenders are interested in avoiding foreclosing on your home. You have to talk with them.

Alternatives to Foreclosure

Loan Modification

If you have fallen behind, you should consider working out a modification to your loan with your lender. In many instances, the lender will allow you to add missed payments onto the back end of the loan as long as you continue making the remaining mortgage payments as they come due. Other ways to modify your loan include reducing or fixing your interest rate, stretching the loan out over a longer period of tme, or through a forebearance. Again this will involve communicating with you lender.

Repayment Plans

A common approach takes the amount of the arrearage and divides it up into twelve equal parts and repaid over a period of one year. The second method often requires a lump sum paid to the lender in the amount of half the past due amounts, with an increase in your monthly mortgage until the balance is paid in full.

Refinancing

If you are currently in an adjustable rate mortgage, and you have a decent credit score, a good solution for you to consider is refinancing into a fixed rate mortgage. However, be mindful that you may be required to contribute a down payment in order to get into the fixed rate loan. With where the Federal Reserve has us headed now getting out of an adjustable rate mortgage and stopping you foreclosure would be killing two birds with one stone!

There are various loan options if you are in a position to qualify and if you are just not sure of your situation you need to contact JD at Fairway Mortgage right here in Chandler to go over all of your options. Click the button below or just give him a quick call.

Selling

Selling your home can protect your credit score and with any remaining equity in the home you could even put a large sum of money in a special rent account to keep you sound for a year or two while you re-chart your course. If the lender sells your property at auction they only care about reclaiming to amount due on the loan and any and all of your equity goes to the wind.

If you are in this position and have any equity at all and all of these other options are off the table by now let’s at least sell your property to harvest that equity. We can many times even get your auction date pushed out far enough to get your house sold. We have the Trustee contact info at our fingertips most of the time.

Short Selling

A short sale occurs when a buyer seeks to buy your home for less than what is owed on the mortgage and requires agreement from the lender. However, keep in mind that a short-sale takes a much longer time to complete and may result in 1099 income and results in tax issues. Under certain conditions, this 1099 income can be avoided. You will need an attorney on this one before agreeing to the short-sale. One of the things you are looking for in a short sale is a release of liability from your lender. This release must be in writing and your sales documents must be drafted carefully by your attorney.

Deed in lieu

Here, you essentially agree to give or deed your house back to the lender in return for the lender allowing the loan to be satisfied and releasing the borrower from any further liability on the loan. Be sure to negotiate this essential term in writing with the lender prior to executing the deed.

Bankruptcy

In some instances, bankruptcy can assist in keeping your house. Whether this is possible, and whether it is in the best interests of the homeowner requires that you consult with a knowledgeable attorney if you are considering this option.

FHA

Homeowners with FHA loans have additional remedies available to them. Contact the FHA directly to discuss your options.

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